Question

From time 0 to time 10, payments are made at a rate of 10-t. The continuously...

From time 0 to time 10, payments are made at a rate of 10-t. The continuously compounded interest rate is 5%. Determine the present value of these payment at time 0.

A) 40.00

B) 42.61

C) 45.22

D) 47.83

E) 50.44

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Answer #1

Correct answer: 47.83

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

Please note: minor difference is due to rounding off.

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